Maintaining Positive Relationships with Clients

A successful organization requires effective management in various departments. The sales head is responsible for ensuring that the sales team meets its targets and has qualities such as patience, tolerance, and an outgoing personality. A pre-sales team prepares presentations and provides information on upcoming events to support the sales process. Client relationship management ensures long-term relationships with satisfied clients through feedback and event organization. Human Resource Heads manage the recruitment, training, and development of employees, while HR Teams and Admins handle day-to-day office operations.

Running Head: Entrepreneurship
Entrepreneurship
Business Idea and its components

Entrepreneurship 1
Executive Summary
Currency fluctuations are an everyday phenomena. Due to several macroeconomic factors, these
fluctuations have increased morbidly over the recent years. They do not impact individuals
directly but firms exporting from and importing to Australia are majorly affected by these
movements. The business model in the assignment talks about a currency consulting firm where
a group of advisors who are subject matter experts will track, monitor and forecast the movement
of Australian dollar with respect to other currencies and guide importers and exporters on how
they can minimize their risks.

Entrepreneurship 2
Contents
Executive Summary.....................................................................................................................................1
Introduction:................................................................................................................................................3
Need Analysis:............................................................................................................................................3
Target Market:.............................................................................................................................................4
Business Model:..........................................................................................................................................4
Fixed Fee.................................................................................................................................................4
Profit Sharing..........................................................................................................................................4
Business Model Canvas...............................................................................................................................5
Services offered:..........................................................................................................................................6
Currency Consultation.............................................................................................................................6
Live Screen..............................................................................................................................................6
Customized Strategies.............................................................................................................................7
Research Reports.....................................................................................................................................7
Organizational Structure..............................................................................................................................8
CEO and Managing Director...................................................................................................................8
Head of Consultation...............................................................................................................................8
Fundamental and Technical Researchers.............................................................................................9
Client Servicing Personnel..................................................................................................................9
Head of Sales...........................................................................................................................................9
Pre sales team......................................................................................................................................9
Client relationship management........................................................................................................10
Human Resource Head..........................................................................................................................10
HR Team and Admin.........................................................................................................................10
References:................................................................................................................................................11
Appendix...................................................................................................................................................13

Entrepreneurship 3
Introduction:
Entrepreneurship involves the procedure of starting a business and the one who starts the
business is called an entrepreneur. It is an extremely wide subject. At the very core of it,
Entrepreneurship is a way of thinking, it is a mindset of solving problems and creating value
(Business News Daily, 2017). Entrepreneurship is crucial for any economy as it feeds on
innovation which eventually leads to growth. This is the reason why governments are extensively
working to support and promote businesses in the form of subsidies, grants and aids.
My idea revolves around the foundation of a ‘currency consultation’ firm. In the current
economic scenario it has been observed that there are immense fluctuations in the Australian
Dollar against the US dollar. In the last three years alone, it has been noted that the currency has
touched a low of 0.6863 and a high of 1.0509 (XE, 2017). Of course, such movements in the
currency will not have a direct impact on individuals, But there are various businesses including
but not limited to exports and imports where the such fluctuations tend to have a major influence
(ABC News, 2015). The very aim of this currency consultation firm is to help clients trace,
scrutinize, control, work at decreasing the effect as well as take advantage of these movements.
Need Analysis:
The backbone for the success of any business is to recognize a need gap in the society and work
towards fulfilling that need with the business offerings. Before starting any business, it is
important to identify the right customer as that forms the backbone of the company (Harvard
Business Review, 2014). The trade barometer in Australia is consistently on a rise and the
upcoming forecast for the same is upward looking (Reuters, 2017). This is evidenced by the fact
that Australia exported AUD 31.07bn and imported AUD 30.61bn worth of goods and services
in the month of July this year (Trading Economic, 2017).
Predominantly Australian trade transactions are conducted with US dollars being the currency of
exchange. Therefore, it intensely and often adversely influences several export and import
businesses mainly because they are incompetent to predict these currency vicissitudes
beforehand. This firm aims to mend that bridge by offering consultation and advisory services
wherein financial experts track the currency market and guide the clients upon various details of

Entrepreneurship 4
their business like time of booking orders, tools for hedging1 their currency from risk and also
guide them on their respective banking charges2.
Target Market:
Phillip Kotler defines target market as a set of well-defined set of customers whose needs the
organization plans to satisfy (Creighton University, 2002). The company’s target market would
ideally be businesses importing to Australia. Most of Australian imports include Iron ores,
petroleum, gold, wheat and coal. Firms that are exporting from Australia will especially natural
gas, minerals, wool and agricultural products will also be targeted. Geographically, The firm will
begin operations in Sydney as the city is a home for tremendous number of exporters and
importers, however clienteles would be targeted throughout the country.
The positioning of the firm would be done as a niche, targeting exporters and importers with an
annual turnover of more than AUD 20 million. The organization will gain competitive advantage
by hiring top executives who are subject matter experts and have a solid grasp in the field of
currency trading. The knowledge industry is on a rise and while selling this knowledge it is the
human resource of the organization that matters the most (Forbes, 2011).
Business Model:
Services offered are niche and hence targeted clients would be businesses with an export/import
turnover of over AUD 20 million. Most of the firms today make a lot of pricing mistakes as they
fail to understand that no single pricing strategy can work for all the clients (Forbes, 2015).
Hence we will be offering two different business models to our clients to choose from.
Fixed Fee: In this model, services will be charged in the form of annual consultation fee which
will be different for every client depending on their turnover. The payment structure would
include paying the fees in two parts. A part of the remuneration would be made in advance and a
part after initial 6 months of service. The advance fee will help us cover the cost for getting the
clients on board. Also, this model brings an element of trust among the clients specifically when
they are given an option to pay half of the fees after six months.

Entrepreneurship 5
Profit Sharing: In this model, clients can choose to share their profits monthly or quarterly,
depending on their business cycles, based on our advice. This is done as the time between getting
an order and actually delivering the good can range between one month and six months. Systems
would be appropriately placed in order to track when and how much have the clients benefitted
from the guidance of the experts. And a daily updated portfolio management sheet would be sent
to clients regarding the same.
Business Model Canvas
Key Partners Key activities Value Proposition Customer relations Customer segments
Two key personnel.
 Head of sales
 Head of
consulting
 Customer
relationship
management
 Research
 Market
analysis
 Selling
 Customer
profiling
 Marketing
and PR
 After sale
and pre sale
service
 Awareness
of currency
markets
 Reduced
risk due to
currency
movement
 Rise in
profit
margin
 Every Day
advisory and
market
update
 Fortnightly
meetings
 Dedicated
CRM
personnel to
every client
 Customer
portfolio
managers
 Export
businesses
 Import
businesses
 Banks
 Financial
institutes
 Institutional
investors
 Day traders
Key Resources Channels
 Financial
analysts
 Bloomberg/
Reuters
terminal
 Library of
Research
reports
 Data team
 Human
resources
 Events
 One on one
meetings
 Cold calling
by data team
 References
by existing
clients
 Marketing
and PR
Activities
Cost Structure Revenue Structure
Fixed cost
 Employee salaries
 Land and building expenses – lease
payments and rent
 Bloomberg/ Reuters terminal
Variable Cost:
 Office utilities
 Travelling expense
 Consultation fees paid by clients
 Monthly fees for live screen
 Bonuses shared on profits made by clients

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Services offered:
Currency Consultation
Chief Service provided by the organization will be currency consultation. Wherein a team of
financial analysts will study the past and predict the future movements in AUD with respect to
other currencies after a rigorous fundamental and technical analysis. This forecast will be
disclosed to our clients in the form of personal telephonic advisory on every FX transaction they
incur.
We would have a separate team to do this analysis and track the market. Fundamental analysis
includes scrutinizing the data of a country and understanding its impact on the currency. These
data collected include unemployment rates, inflation, GDP growth rate, interest rate fluctuation
and minutes of RBA meetings etc. (Forex Factory, 2017). Whereas technical analysis involves
study of the historic movements in the currency and mathematically forecasting the future trends.
This is achieved by use of Bloomberg and Reuters terminals as currently they are the most
effective tools of financial analysis (Financial Times, 2017)
Live Screen
An Ancillary assistance offered would be a Bloomberg or Reuter linked live screen where clients
will be able to monitor the live movement of AUD against all other currencies as and when it
happens. Most of the websites and news channels show slightly lagged rate and it becomes
difficult to negotiate with the banks as they do not consider these as efficient tools. Only Reuters
and Bloomberg terminals provide exact rates and these are really expensive terminals. This is
where the need gap comes, and this is filled by creating live screens that are Bloomberg linked.
They are not as accurate as Reuters or Bloomberg but far more effective than new channels.
Once the clients have this screen, they are in a better position to negotiate with the bank and get a
better exchange rate.
This can be explained better with an example: Consider a company ABC exports sells its goods
to USA and charges the importing company USD 1 million. Upon completing the order, client
makes a payment and this USD 1 million reach ABC exporter’s bank. Now bank will decide at
what rate the exchange should be made. If the bank offers AUD 1.10 per dollar instead of AUD

Entrepreneurship 7
1.25, ABC exports makes a direct loss of AUD 150000. This is where live screens come into
picture as many banks today are taking advantage of the lack of available tools in the market and
cheating clients by offering a lower interest rate. In fact research shows that it is the big banks
who offer make the most money and most expensive way to buy or sell foreign currency (Herald,
2017).
Customized Strategies
Upon getting the client on board, our analysts work on designing customized hedging strategies
for clients and provide guidance on how they can be protected from currency fluctuations.
Currency hedging requires deep understanding of various tools and our team of experts have
extensive and detailed knowledge of these. Therefore, at any point of time they will assist the
client with the most appropriate tool. Due to the rising Australian dollar, currency hedging is
again gaining ground with investors (The Australian, 2017).
Today there are various ways of hedging the currency and gaining protection from avoidable
risks. Different tools work well in different scenarios. Most of the times, the clients are unaware
of these tools and hence end up making losses. The team of experts at our firm will ensure that
every client has a customized strategy. And these may depend on the size of the order, the
country counterpart, macro-economic outlook of both the countries, cost of the tools and
expected trends of both the currencies.
Research Reports
One of the additional services provided to the clients would be an unlimited access to research
reports. These reports would be available on the company website and the clients would be given
an ID and password to access the same. Other individuals or firms who wish to access these
reports will be charged. This service is provided for clients to have a written validation of the
views of our company and for the company to have a bank of data which will be valuable as the
years pass by.

Entrepreneurship 8
Organizational Structure
Organizational structure basically elaborates on how various subunits are divided and how well
are they coordinated for task completion (Organization development and change, 2013). It is
very important that every entrepreneur pays attention to the kind of organization structure that
must be in place.
CEO and Managing Director
Like every other organization the role of the CEO would be to be at the top of the things. In a
startup structure, the CEO would be responsible for getting investors and ensuring the business
goes as planned. It is important that the CEO puts his best foot forward at all times as he or she is
the face of the organization. CEO becomes a brand and it is imperative that the brand must be
preserved by their behavior (Forbes, 2012). CEO is involved at the strategic level of the business
and any new policies or structural changes are approved by the CEO.
Head of Consultation
Head of consultation must ensure that the researchers are doing their job efficiently. He or she is
responsible for ensuring that the entire firm holds the same view on the currency. Because it is a
CEO and Managing
Director
Head of
Consultation
Fundamental and
technical
researchers
Client service
personnels and
daily advisors
Head of Sales
Pre sales team Client relationship
management team
Human Resource
Head
HR Tem and Admin

Entrepreneurship 9
knowledge center, sometimes financial experts can get biased by their personal opinions on the
matter. It is the responsibility of the head of consultation department to supervise and approve
every report published by the firms and every strategy sent to the clients.
Fundamental and Technical Researchers
The aim of these researchers is to analyze fundamental and technical data as per their expertise
and offer a view on the currency. They must understand how to club both of the data together
and bring out the best forecast as different kind of analysis are better suited for different
currencies (DailyFX, 2012). They also need to write research and release reports to the clients
and formulate strategies for them as and when required. This team must be hired with
excruciating detail as their research eventually forms basis of the company’s success.
Client Servicing Personnel
These client servicing advisors would be the client contact. Every personnel will handle not more
than 10 clients at a time. They must be well versed with their views on the market and possess
excellent communication and crisis management skills. They must be available to clients at all
times and be able to maintain positive relationships with them.
Head of Sales
Sales head would be the face of the company at all times. He or she would be the first person that
the client will come in contact with. It is the responsibility of the sales head to ensure that the
sales team meets its targets. The four biggest qualities that a sales must have include patience,
tolerance, and outgoing personality and assertiveness (Inman, 2017). They will do cold calling,
attend and organize event and get referral from clients. Sales head will ensure that the entire
procedure from the first point of contact till the client comes on board is smooth.
Pre sales team
This team will ensure that the sales team is prepared every time they go for a meeting. They will
make presentations for the sales team, inform them if there are any upcoming events and
basically make the sales procedure smooth for the sales team.

Entrepreneurship 10
Client relationship management
CRM is a very critical function in any organization today. A strong connect with customers help
build long term relationships with them (Fox Business, 2012). Client relationship management
team will ensure that clients are satisfied with the services. They will be responsible for taking
feedback from clients, organizing events for them. A CRM contact will also be assigned to every
client once they are on board and the client can contact that person in case of any issues, queries
or grievances.
Human Resource Head
Human resource head has to make sure the human resources of the firm are in place. In order to
survive the competition, it becomes imperative to increase the efficiency of organization’s
resources with the help of HRD (Harvard Business Review, 2008).The responsibilities of the HR
head fall under the spectrum of recruiting, training & development, team building, exit
interviews, compensations and any other issues faced by the employees.
HR Team and Admin
HR head would be leading a team of employees actively involved in HR functions. Along with
this, an Admin would also be in place in order to ensure the everyday functioning in the office
remains smooth. Bringing in office supplies, ensuring communication within the office,
maintaining files and fulfilling other office needs as and when they arise are functions of the
admin.

Entrepreneurship 11
References:
ABC News, 2015, ‘Falling dollar, rising fortune’
http://www.abc.net.au/news/2015-08-05/jericho-a-falling-dollar,-a-rising-fortune/6673074,
viewed on 19 September, 2017.
Business News Daily, 2017, ‘What is entrepreneurship’,
http://www.businessnewsdaily.com/2642-entrepreneurship.html, viewed on 20 September, 2017.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Daily FX, 2012, ‘Fundamental and Technical analysis’,
https://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2012/01/20/
Technical_Versus_Fundamental_Analysis_in_Forex.html, viewed on 20 September, 2017.
Financial Times, 2017, ‘Bloomberg suffers rare drop’, https://www.ft.com/content/6b547cb8-
1396-11e7-80f4-13e067d5072c, viewed on 19 September, 2017.
Forbes, 2011, ‘The rise of the knowledge market’,
https://www.forbes.com/sites/jenniferhicks/2011/06/27/the-rise-of-the-knowledge-market/
#548711e61721, viewed on 19 September, 2017.
Forbes, 2012, ‘As CEO are you putting your best foot forward’,
https://www.forbes.com/sites/theyec/2012/08/08/as-ceo-are-you-putting-your-best-face-
forward/#6bb4e4016df2, viewed on 20 September, 2017.
Forbes, 2015, ‘The biggest mistake you can make while pricing services’,
https://www.forbes.com/sites/ianaltman/2015/12/22/the-biggest-mistake-you-can-make-pricing-
services/#d5ca15da38a8, viewed on 19 September, 2017.
Forex Factory, 2017, ‘Economic calendar’, https://www.forexfactory.com/calendar.php, viewed
on 19 September, 2017.

Entrepreneurship 12
Fox Business, 2012, ‘Building a strong relationship with your customer’,
http://www.foxbusiness.com/features/2012/01/27/building-strong-relationship-with-your-
customers.html, viewed on 20 September, 2017.
Harvard Business Review, (2008), ‘Connecting HR with Competitive Advantage’,
https://hbr.org/2008/06/connecting-hr-with-competitive, viewed on 20 September, 2017.
Harvard Business Review, 2014, ‘Choosing the right customer’,
https://hbr.org/2014/03/choosing-the-right-customer, viewed on 20 September, 2017.
Herald, 2017, ‘Australians are being ripped off on currency exchange’,
http://www.theherald.com.au/story/4873088/australians-are-being-ripped-off-on-currency-
exchange/?cs=2373, viewed on 19 September, 2017.
Inman, 2017, ‘Four qualities of a sales agent’, < https://www.inman.com/2017/09/18/4-
qualities-to-look-for-when-hiring-an-inside-sales-agent/>, viewed on 20 September, 2017.
Kotler, P, 2011, https://people.creighton.edu/~shu02225/nps_c_04.html, viewed on 20
September, 2017.
Reuters, 2017, ‘Australia’s central bank holds fire as economy on the rebound’,
http://www.reuters.com/article/us-australia-economy-currentaccount/australias-central-bank-
holds-fire-as-economy-on-the-rebound-idUSKCN1BG07D?il=0, viewed on 20 September, 2017.
The Australian, 2017, ‘Rising Aussie dollar puts hedging back on investors’ agendas’,
http://www.theaustralian.com.au/business/wealth/rising-aussie-dollar-puts-hedging-back-on-
investors-agendas/news-story/431f95c162d6811d80b005330d8cd5f6, viewed on 20 September,
2017.
Trading Economics, 2017, ‘Australian Exports’, https://tradingeconomics.com/australia/exports,
viewed on 20 September, 2017.
Trading Economics, 2017, ‘Australian Imports’, https://tradingeconomics.com/australia/imports,
viewed on 20 September, 2017.

Entrepreneurship 13
XE, 2017, ‘AUD to USD Chart’, http://www.xe.com/currencycharts/?
from=AUD&to=USD&view=5Y, viewed on 20 September, 2017.
Appendix
1. Currency Hedge is a way for any organization to minimize or remove the risk arising
from currency fluctuations on a daily basis.
2. Banking charges are several charges levied by the bank on Australian firms. RBA has
capped these charges but still banks continue to charge highly.

Entrepreneurship 14